Re:Portland approves 10% cap on fees that food delivery apps...
by EForEndeavour on Thursday July 09, 2020 @11:01AM
(#23781011)
> It shall be unlawful for a Third-Party, App-Based Food Delivery Platform to charge a Restaurant a fee (including, without limitation, any DELIVERY FEE) for the use of its
services that totals more than 10% of the Purchase Price of the order made through the Third-Party, App-Based Food Delivery Platform.
Do delivery apps charge "delivery fees" to restaurants as well as to the customer? Yes, the ordinance applies to restaurant charges, but this provision reads ambiguously to me, as I don't know if third-party platforms charge the restaurant a delivery fee while also charging the customer a (possibly different) delivery fee.
Re:Portland approves 10% cap on fees that food delivery apps...
by ceejayoz on Thursday July 09, 2020 @11:14AM
(#23781146)
I don't see what you find confusing in that wording.
They can't charge a restaurant a big delivery fee. Whether they are or not currently is immaterial; that wording prevents them from going "fine, we won't charge commission, we'll just tack on a different fee that replaces it".
Legislation often includes these sorts of "we know you think this is a loophole, it isn't" wordings.
> “Purchase Price” means the menu price of an online or phone order. Such term excludes taxes, gratuities, and any other fees that may make up the total cost to the customer of an online order.
> It shall be unlawful for a Third-Party, App-Based Food Delivery Platform to charge a Restaurant a fee (including, without limitation, any delivery fee) for the use of its services that totals more than 10% of the Purchase Price of the order made through the Third-Party, App-Based Food Delivery Platform
Nowhere does it say they can't charge customers a huge app/delivery fee.